WISE FINANCIAL LITERACY CERTIFICATION PRACTICE EXAM
QUESTIONS AND ANSWERS MOST RECENT VERSION 2026
To qualify for a Federal Housing Administration (FHA) loan, what must a
person generally do? Fulfill income guidelines.
What question should a high school student focus on first when investigating
finance as a career choice? Will I find a balance between financial rewards and
personal satisfaction from work?
What is a type of electronic funds transfer (EFT)? An ATM transaction.
What does a defined-contribution pension plan mean for an employee upon
retirement? The employee will receive the total amount of money contributed
plus investment earnings.
What is true about the interest earned on United States Series EE Savings
Bonds? It is exempt from state and local taxes.
What type of investor is buying a treasury bill (T-bill) best for? Investors who
are looking for a secure, low risk investment.
What does it mean when a qualified investor buys stock on fifty percent
margin? The brokerage firm is lending the investor fifty percent of the money.
What does a person need to know to determine the time value of depositing one
hundred dollars in a savings account? The interest rate and the rate of inflation.
What is the amount a lender charges to borrow money called? Finance charge.
What is the cost to use someone else's money for a period of time called?
Interest rate expressed as a percentage.
What is interest earned on interest known as? Compounded interest.
What is the concept that money received today is worth more than the same
amount received in the future? The time value of money.
Why would it be appropriate to add a personal property floater to homeowner's
insurance for a flat screen plasma television? To cover the cost of replacement
should the television get damaged or stolen.
QUESTIONS AND ANSWERS MOST RECENT VERSION 2026
To qualify for a Federal Housing Administration (FHA) loan, what must a
person generally do? Fulfill income guidelines.
What question should a high school student focus on first when investigating
finance as a career choice? Will I find a balance between financial rewards and
personal satisfaction from work?
What is a type of electronic funds transfer (EFT)? An ATM transaction.
What does a defined-contribution pension plan mean for an employee upon
retirement? The employee will receive the total amount of money contributed
plus investment earnings.
What is true about the interest earned on United States Series EE Savings
Bonds? It is exempt from state and local taxes.
What type of investor is buying a treasury bill (T-bill) best for? Investors who
are looking for a secure, low risk investment.
What does it mean when a qualified investor buys stock on fifty percent
margin? The brokerage firm is lending the investor fifty percent of the money.
What does a person need to know to determine the time value of depositing one
hundred dollars in a savings account? The interest rate and the rate of inflation.
What is the amount a lender charges to borrow money called? Finance charge.
What is the cost to use someone else's money for a period of time called?
Interest rate expressed as a percentage.
What is interest earned on interest known as? Compounded interest.
What is the concept that money received today is worth more than the same
amount received in the future? The time value of money.
Why would it be appropriate to add a personal property floater to homeowner's
insurance for a flat screen plasma television? To cover the cost of replacement
should the television get damaged or stolen.
